Why Property Owners (Not Just Lawyers) Should Understand Intended Use

Why Property Owners (Not Just Lawyers) Should Understand Intended Use

In the world of appraisals, one phrase shapes everything: intended use.

It’s the most important question you can ask when ordering an appraisal—and one of the most overlooked. Yet it determines the entire scope of work, from how the appraiser approaches the assignment to how the report can legally be used later.

And while attorneys and fiduciaries often understand this, many property owners don’t.

So let’s break it down. Because understanding intended use isn’t just technical. It’s practical—and it can save you time, money, and frustration down the road.

What is "intended use," exactly?

Intended use is the reason the appraisal is being performed.

It answers the question:
“What decision will this valuation help support?”

That might sound simple, but it has enormous implications. The same property might have completely different values, formats, and requirements depending on why the appraisal is being ordered.

For example:

• If it’s for divorce proceedings, the report needs to reflect the legal valuation date (which may differ from today’s market) and be written in a neutral, court-ready format.
  
  
• If it’s for estate settlement, it likely needs to reflect retrospective value based on the date of death.
  
  
• If it’s for listing or pricing advice, the appraiser may approach it differently—possibly with less narrative depth and a forward-looking market focus.
  
  
• If it’s for tax appeal, the report must align with local assessment timelines and valuation rules.
  
  

Without a clear intended use, the appraiser is working in the dark—and so are you.

What happens when the intended use is wrong—or unclear?

This is where problems start.

We’ve had clients come to us with appraisals they thought were “done”—only to find out they weren’t usable for their legal or tax purpose. Sometimes they were prepared using the wrong date. Other times they lacked the format or explanation required for court or the IRS.

In the worst cases, clients unknowingly relied on an appraisal that was never intended for their situation—and suffered consequences later in mediation, court, or audit.

Intent drives scope. And when scope is off, everything that follows becomes riskier.

Why it matters for property owners

Even if you’re working with an attorney or financial advisor, you should understand intended use. Because ultimately, you’re the one relying on the appraisal to support your decisions.

And asking the right questions early—like “Is this report built for court?” or “Will this meet IRS standards?”—can save you from costly surprises later.

At Bernhardt Appraisal, we walk every client through this process up front. Before we start gathering data or analyzing comps, we make sure we understand the assignment. What’s the use? Who’s relying on the report? What do they need from it?

It’s not about adding complexity. It’s about giving you exactly what your situation calls for—no more, no less.

One property. Many purposes. Different outcomes.

A house isn’t just worth what Zillow says it’s worth.

Its value—and the way that value is documented—changes based on the reason you're asking. That’s why we don’t do “one-size-fits-all” appraisals.

So if you’re ordering an appraisal for anything beyond a basic sale or refinance, make sure your appraiser is asking about intended use. If they aren’t, that’s a red flag.

Because a good appraiser doesn’t just assign value—they understand context. And that’s what makes the difference between a generic number and a report that actually serves you.

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